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The Path to an Audi R8 (Or Anything Else You Want)

By Pat Flynn on January 18, 2010

Most of you know that family is my number one priority, especially with the recent birth of my son who is now 25 days old. Most, if not all of the decisions I make from now on are done so with him in mind.

However, I’m still a dude, and dudes love their toys. My dream toy is an Audi R8, a car that I first saw in a commercial during the 2008 Super Bowl. I don’t remember the score of the game, or even where it was played, but I do remember that car. I’ve wanted it ever since.

How to Get an Audi R8

Assuming $4000 down, the 5-year plan (60 month loan) would cost me a total of $2,341 a month. As Tim would say, we have a TMI (target monthly income) of $2,341 for this particular want.

Step 2: Break down the monthly expense into a target daily income (TDI).

Now that we can see the TDI, the R8 seems much more attainable. It would only cost me an extra $78.03 a day to own my dream car. Putting a dollar value on your dreams helps you to realize that the big things you dream of are in fact not as far away as you think.

Step 3: Increase your income accordingly.

Obviously, this is easier said than than done, but now that we know how much more we need, we can then determine the types of things we have to do (and don’t have to do.)

In other words, $78.03 a day is not $500 a day. Trying to increase my daily income by $500 a day would take drastic measures. But, if I had to make $500 a day in order to get something I wanted, then it would be those drastic measures I would be interested in taking.

$78.03 a day is only four $19.99 products, two $39.99 products, or one $79.99 product. Or, what about a coaching course that costs $1200? Take on two clients a month, and you’ve got yourself an R8. See how it’s starting to come to life?

To add on to the idea of increasing your income, here’s a direct quote from Tim Ferriss’ blog regarding “lifestyle costing” and the Target Monthly Income:

“Even if the total is intimidating, don’t fret. It is possible—case studies in the book prove it—to get to more than $10,000 per month in extra income within three months. This is usually 3 or 4 times more than is needed. Getting to an extra $2,000 or $3,000 is seldom a problem.”

And Tim is right. You can increase your income. I’ve done it myself too, from scratch—and I’m no better, or no more special than you are.

Should You Get an Audi R8?

The answer to that question is up to you.

For me, I definitely have enough room in my income for an extra $78.03 a day. However, as much as I want to get my dream car now, I would much rather spend that money on a house, my kids’ education, and family trips. All of those things are included in an overall “dream sheet” where I break down the costs of each of those things, which I’d love to share with you later.

Priorities are still important to understand. (But don’t get me wrong, I still want the R8!)

Additionally, I think I would much rather “save” $78.03 a day for 5 years and invest that money so I could pay for the car in full. Or, work on new income streams that could help me earn an extra $78.03 a day, so I don’t feel like I’m taking a loss.

In Conclusion

This post isn’t really about an Audi R8. It’s about realizing what you want, and figuring out how to get there.

The true thinking behind this methodology is that what we do should be determined first by what we want in life, not the other way around. What you want in life is what everything else should be based off of.

Have you sat down and determined exactly what kinds of things you want in life?

Wow Yaro – that’s a crazy amount of money right there for the same exact car. Hey, next time you come to the U.S., let’s get together and test drive one

Daniel

In Singapore, an Audi R8 would cost more than $300k and you can only drive it for maximum 10 years. If I am considering buying one I will need to set aside more than 3 times of $78 per day :-0

Dreams and wants in life kept changing ever since from young adults and not all have the ability to realize their wants or dreams.

Sometimes people wants and dreams are not just materials but lifestyles.

Pat

Hey Daniel, why is there a 10 year limit for driving it?

Anyways, you’re absolutely right, peoples wants and dreams are not just materials, but lifestyles. In fact, it’s usually those materials that add to the lifestyle of that person. Cheers Daniel!

Daniel

Hey Pat,

Singapore is a small tropical island with over 4 million populations. To control the traffic conditions (so everyone can drive happily), every car comes with a Certificate Of Entitlement which last only 10 years. Cars will be send to scrap yard after 10 years even if the condition is still superb.

Cheers

Ray

Daniel, I drive two Acura’s both would be crushed if I lived where you live. It doesn’t seem right I just got my 2000 TL and 1997 CL broken in.

(Nice post by the way. All problems should be attacked in this manner — income, traffic, conversions, etc. It is always useful to break things down into a small scope that can be imagined/understood/attained.)

Regards,
Mark

Pat

Heh – I don’t think there’s room for a car seat in this thing…LOL. Plus, playing “i spy” would be tough since everything would be moving so fast.

There is tremendous value in breaking numbers down to make them more tangible and yours is a very good example.

Well, with one exception, as far as I’m concerned. No matter how cool a toy is, I am absolutely not willing to still be paying for it five years from now. Like you, I’d rather save up and then buy it up-front.
But then again, as you said, this post is not about the R8.

Awesome car, by the way. Wouldn’t mind one myself.

Cheers,
Shane

Pat

Hey Shane, good to hear from you! Glad to see you’re with me on the “not paying for something for 5 years out” thing.

Omar

Very good post Pat. Never thought of breaking things down in that manner, makes goals possible to attain or makes you realize that your closer to attaining your goals than you think. Been wanting to buy my kids a huge wooden swing set for them to play outside…. Wonder how much extra a day I have to make to attain that goal?

Thanks for the insight,
Omar

Pat

Oh man, once my son grows up, I know he’s going to want one of those swings sets too. Some of them are quite elaborate actually! Cheers, and good luck Omar!

I did one extremely similar where I show my formula that I use to crush $500k a year. I use a lot of what Tim was talking about but a tad different. I’ve been doing this before I read Tim’s book but I was glad to see someone else who is a lot more influential than I am talking about it.

Pat

Hey Nick, would you be willing to share some tidbits as far as how you measure things up and tackle $500k a year? Maybe some tools or quick tips for staying on track? Good stuff! Thanks!

I do it a little differently, I use my initial # as a starting point. I’m continuously adding to it every time I do a single deal over a certain $ amount thus increasing all the numbers once again. At the end of the year, the original target # was absolutely crushed.

Pat

Thanks for sharing Nick – this is pretty awesome! I’m reading it again just to make sure I picked up everything.

What a great breakdown of needs, wants and goals. By turning everything into a TMI you can effectively adjust all of those. Base bills, additional needs, wants and goals. See where you are sitting at the current moment and start making adjustments in order to keep reaching new goals. I love the R8 and saw one about a month after they came out in Fargo and fell in love instantly. This would definitely be one of my future wants as well.

Pat

Hey Josh! I don’t see any reason why anyone would NOT want to look at their bills, needs wants and goals this way. It really helps with putting things into perspective and then taking action. Send me a pic when you get that R8! Thanks!

Fantastic analogy, Pat. Breaking down your wants into what you can earn/save per day to get that want is the way to go. Can I earn an extra $78 per day? Probably. But do I want to? No, not to get an Audi. It’s just a car But, I have other goals for my money which TMI would be very useful

I second Pat’s suggestion to Nick, I too would be interested in how he and other people are doing this in their real lives.

Great article!
Karen

Pat

Hey Karen – I can’t take credit for this kind of thinking. Obviously, it’s Tim Ferriss from the 4-Hour Workweek, but I’m glad to share this kind of thought process with you and everyone else! Cheers Karen! Thanks!

I remember that same commercial. I want to say it was during the first timeout. I was sitting with a few of my dad’s friends who can easily afford that car and all of their jaws dropped. Funny how that memory sticks out in my mind.

This is a great post. Cars aren’t my thing although that one is pretty awesome.Being debt free is my goal right now. It seems so much more attainable when you break it down by days. So I’ve set my numbers, now I’ve got to get to work.

Pat

Hi Michele! I think being debt free is probably the goal that everyone should have before looking into anything like this, but yea – it’s all about the numbers! Thanks for your comment, and best of luck!

This is a great post, and I’m going to recommend something that I have had some friends who currently have a larger wallet than me have done, and that’s luxury rental. You could actually rent that R8 for enjoyment, without the hassle of payments or maintenance costs.

This way like you said, more of your money could go towards your home, family trips and traveling.

My friend Mark rents Ferrari’s whenever he goes to a major event. Something to consider.

Pat

Hey Mike – that’s definitely a great idea. I’ve actually seen a lot of people here begin to rent out things like furniture and large televisions too. Hmm…maybe I should just rent an R8 for a weekend. Ahh, so cool! Thanks Mike!

I made similar calculation actually just combining salaries I want to pay myself and partners on a new project and other expenses.. it came down to like 12000 bucks a month!!!! Which is like 380 dollars a day!!! Now that is my goal.. will take time to happen!

Pat your great always uber encouraging, i totally believe you can get that Audi too! But do those things even take baby seats? I love breaking it down to that basic of a number… I’ve been doing that on my blog, or encouraging others to, figure out a way to make anything they do in life a freelance-able project. I.e. showing that anyone can make an extra few grand a month if they just get creative enough and consult, freelance or create a few info products. Cheers and go get em!

Pat

Hey Maren! Thanks! And I’m doubtful there’s room in there for a baby seat…lol! Keep up the good work, I think you’ve got some great stuff in the works. Can’t wait to see how we’re all doing at the end of the year! Cheers and best of luck to you!

Hey Pat!
Really good article man! I loved reading this just like I loved Tim Ferris’s book! It’s amazing how you can break such a massive sum into just $78 per day. Now you can also see the power of saving $100 a day for the next 10 years. You could buy so many things, like you say: a house, vacations, college for your kids. For the price of one R8 you could buy yourself a nice BMW 330Ci (one of my favs) , buy your wife one too and probably buy your son a nice new golf GTI decisions decisions

Great stuff. Breaking it down to daily costs makes it easier to set little goals. If I am able to achieve these small goals, then I have already proven that I can buy this car! I just need to do the same every day. Thanks Pat…

Luv number crunching in general, when i first saw the total figure for that car it was like, omg, thats expensive, hahaha, then to see it broken down at less than $80 bucks gets your mind past the limiting beliefs. Smaller is always better, and that car is HOT, lol.
Keep up the great work, I wonder what kind of car your wifey is looking at right now, hahaha

Pat

Haha, thanks Tammy! It is definitely a HOT car, hehe. My wife has actually wanted a Mini Cooper for quite a while now. Now that the baby is here, we may have to put our little sport cars on hold. Minivan?

While the R8 isn’t my first choice for vehicles, I respect the selection. I prefer Aston Martins myself.

As for building up towards those payments, I remember when I started trying to build out my own passive income that it would be awesome if I could someday cover the mortgage each month. Thanks to what I’ve learned from blogs like yours Pat, I’m happy to say I’m almost there.

Pat

Hey Will – Aston Martins are SICK too…I love em. I get jealous watching Entourage and the Aston they drive.

Awesome job on the passive income Will! Keep up the good work and you’ll have that mortgage payment in no time. Cheers!

It’s good to allow oneself to dream and then to act on it, persistently. Here in the mountains of CO I have another Audi in mind, the A3 TDI recently which recently garnered the greenest something-or-other car of the year award. 44 mpg highway, Audi performance and styling, quattro (especially for up here at 7000 feet, where its snowing right now), and 4 doors. Well-equipped (read: heated seats) for $33k. You can even get a child car seat in there, Pat!

Great post Pat. I recently found your site and I’m very glad I did. I’m pretty sure Nick (the commenter above) tweeted a post of yours and I’ve been hooked since. I know this isn’t the point of your article but you’ll have to take taxes into consideration when buying that car. so 78 bucks would mean you would have to earn at least 110 more a day to get it. There’s always got to be one guy huh?? haha

I love that car by the way, but I couldn’t agree more that the money is much better spent on other things. Toys are great, but only if you have everything else you need.

Pat

Hey Scott! Thanks for stopping by and for your comment!

Can you clarify how you calculated 110 more a day? I’ve included 8% sales tax into the equation (see chart above). In total, after 5 years, I’d end up paying about $143k including the tax and interest rates, which comes out to $78.03 a day.

Just wondering in case I missed something. Anyways, thanks again! Hope to hear from you again soon. Cheers!

Oops. completely didn’t see that in the screen shot you have of your calculations. strike what I said, no wonder no one else mentioned it..

Pat

Ahh – no worries Scott! But you bring up a good point. Sometimes things may not be as cheap as we think they are because of taxes or other things like that. It’s smart to make sure we use the end value. Thanks for the gentle reminder.

I think you may be leaving out (intentionally for simplicity) the costs associated with selling one unit of a product. All those tedious yet necessary costs of doing business. (operating, marketing, etc…). So you would need your net profit from each unit to be 78.03 clams a day to afford that bad ass car. I am correct in my thinking?

Pat

Andrew, you’re thinking correctly. We’d definitely have to look at the net profit, but as you mentioned, for simplicity reasons I intentionally did not mention that. However, doing business online requires a lot less fees, expenses and overhead than a normal brick and mortar business would require 😉

Scott Quitter

Pat,

As crazy as this seems, you’re the one guy who I think could pull this off. Rock on! I look forward to reading about the day you drive it off the lot!

Cheers!
Scott

Pat

Hah, thanks Scott! It may take a while before I actually get it, but I’m working towards it! You’ll definitely know when it happens 😛

Awesome post, R8 good choice brother, Range Rover sport for me as I have a young family too. Dude I would like your advice on monetizing my site which has grown a lot in my first 11 weeks, any chance of sending me an email so we can talk more?

Pat

Hey man! Thanks for the comment. I just sent you a message. Awaiting your reply now Cheers!

I’m going out and getting one this very minute! Okay not really (really?).

I think if we break everything down into increments as exampled then all things are possible. I look forward to reading the new Tim Ferris book. ????

Pat

It’s on it’s way, I promise! I had to wait till the SoCal rain died down before making a trip to the post office

Scott Costello

Pat,

Do you try to engage the commented in conversations to help draw the person to into a conversation? You know what I mean, instead of just acknologing their comment by answering their question or just saying thanks for commenting.

Pat

Hey Scott, I do this A LOT. You’re actually the first one to point that out. I don’t do it on all comments, but for a select few, I ask further questions or ask for further clarification. Further, I often visit people’s websites to see what they’ve been up to and if I find something interesting I’ll let them know. If you’ve noticed me doing this before, great observations!

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Zac

Awful post. You should not be promoting getting a loan for a car on the SMART PASSIVE income blog. A loan is a move in the complete opposite direction of living smartly off passive income. If you want the car, put the $80 a day into investments so that it can grow until you can buy the car outright. Or more importantly pay of any other debts – especially your mortgage.

Pat

I’m guessing you didn’t read the last portion of the post entitled: “Should I get an Audi R8?”. It says that I’d rather do EXACTLY what you just said.

This post isn’t about getting a loan or even about the r8. It’s about breaking things down so you can see that your dreams aren’t as far out of reach as you initially may have thought.

I’d appreciate it if you read the article in whole before jumping to conclusions and leaving a comment like this. Your carelessness may confuse some of my readers.

78$ a day? are you kidding?! 😀 It’s blog post from millionaire to millionaires. And It was super de-motivational post. It shows how really FAR AWAY dreams are and how simple mortal like me will never get audi R8.

Pat

Viktor – no offense, but it’s exactly that kind of thinking that will stop you from achieving these kinds of dreams. Seriously.

Let’s break it down even further. 78 dollars a day is an extra 10 dollars an hour in a regular 9 to 5, 8 hour a day job. Do you think that you can’t get a $10 raise sometime in your life? I would hope that you know you’re worth more than you think.

This is definitely not a millionaire’s post for millionaires. I’m not a millionaire, and I’m just a regular guy just like you. Why should I be able to succeed, but you can’t? The reason is in the first sentence of my comment.

Hey Pat, wow, the comments from Viktor and Zak are the first brain dead comments ive ever read on your site. Someone must have left the back door open me thinks.

Guys, next time read past the title and you may actualy get some wonderful gems of information, if not, then just move on, seriously, not sure where you got your perceptions from, we wish you all the best on your journey and hope the door dont hit ya in the rear on the way out.

(ps: bit harsh pat i know, its much nicer than what i originaly typed, hehe, however, feel free to delete this comment. Im not one to promote negative comments )

I think it should stay, Tammy. This is both the plus and the negative of the internet. People can say anything, but they can also get taken care of by those around them. These guys have only seen the start of it.

Pat is building a culture here and the people here on this blog, that are fans and part of his tribe, won’t allow this. Just look at how it’s played out so far.

Hi Pat, I am continually impressed, not only with the methods you use to live your life authentically, but with your attitude and general web-demeanor. You are never condescending and definitely the most honest, caring and simply nice web presence I’ve encountered. You take a real interest in your readers and have a vast amount of knowledge – for those who are able to accept it.

For the record, I’m one more for the list of ‘those inspired by Pat’. Thanks for the work you do, and congratulations on the birth of your son!

I’m not a millionaire (yet) and this post was an amazing reminder to me that if we just break down our huge/overwhelming/OMG-how-can-I-make-that-happen dreams ~ they really end up being something completely doable. I can surely find a way to pull in an extra 78 dollars a day. Although I probably wouldn’t buy the Audi. 😉 I’m more of a Prius girl ~ which is even cheaper (YAY for me!).

I first saw this type of thinking with the 5 bucks a day products ~ it was a really eye opening moment when I broke down all my bills and how little each one really was each day ~ then the added extras. 😀 oh baby …

Hey Pat, I’ve been hiding in the background of your site for a long time, loving to watch how your community grows but since you facebooked about Zak & Viktor I couldn’t help but jump in and tell them to get a life.

If they had taken as much time as they did on replying on actually reading this (& your other content) they’d know you’re not this high & mighty look-at-all-you-down-there kind of guy. You’re real and that’s why you’re appreciated! But those dimwits are too proud to come back here now… surely?!

This particular post is interesting to me actually because I’m already living location independent & travelling but at the same time trying to educate myself and begin a new business. What this post tells me is that you can apply this exact same formula to things other than money, like effort.

It’s funny, I work out things the same way – how much is this costing me per day, how many customers will it take, how many x’s do I have to sell and then the biggie, is it really worth it.

Great reading, please it coming.

Jackson

I don’t want to dwell on the negative (Viktor and Zak), but this quote came to mind…it’s one I try to remember when I feel like life’s beating me down.

“People are always blaming their circumstances for what they are. I don’t believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can’t find them, make them.”
(George Bernard Shaw)

Just like with any goal, it may appear impossible at first until you sit down and break down the steps to achieving it.

Great post, Pat, and best of luck getting that nice ride (I would prefer an Astro Martin, but that’s just me 😉 )

Wesley Craig Green

Marlo

R8 really is an exceptional car, problems is, having those currencies translated into Philppine peso (an average of P50 per dollar), even with that 84 month plan. it turns out that i would need to save around P2948.33 per day. Its just kind of disappointing since you would need to be very lucky to have a monthly pay of 50k or 70k and above here in Philippines and that did not even meet the P88,450 that you would need in view of that 84 month plan. Not to mention that all the tax that would be added.

Any ideas? Want that car so bad.

BA pass

imes more than is needed. Getting to an extra $2,000 or $3,000 is seldom a problem.”

Haha – no not yet. There are a lot more important things to spend money on right now that I’m focusing on, like investments and my son’s education, etc.

One day though..one day!

jkrych26 .

It’s funny because a base model R8 has the same amount of horsepower as a Mustang GT (2011 or newer) and the R8 costs like 5 times the price.

busterclyde

And your point is?

jkrych26 .

My point is why would someone spend that exorbitant amount of money on a car that has similar performance specifications, seats less people, and is more costly to own versus a Mustang GT, Boss 302, or Shelby GT500? It doesn’t really make sense to me. If I’m purchasing a vehicle that is priced over $100K, it better have at least 500+ horsepower.

kadsfj;

because a mustang gt is a mustang gt and an audi r8 is an audi r8

levels bro

Jerad Burns

its not about the pony power.

jimmy257

Because audi is German engineering where ford is american both good cars but huge quality diffirence and the R8 is just in another class than the mustang.German cars rock#!

Esteban

making a number smaller its just a trick, like buying something for 99.99, its not 100 is in the 90s in hour head. if you divide the 78 by 8 hours of regular work a day 9.75 ,,, oops its more than the minimum wage in the US, so you will have to have a second 8 hours minimum wage+ job to be able to buy a car.

BA pass

imes more than is needed. Getting to an extra $2,000 or $3,000 is seldom a problem.”

unique
domains LOW OBL

Nestor

Thank you for your advice.. it has inspired me not only to work towards buying an Audi R8 but other life goals in my life. I am 18 years old and you convinced me anything is possible with small changes and planning.

BA pass

ow that we can see the TDI, the R8 seems much more attainable. It would only cost me an extra $78.03 a day to own my dream car. Putting
a dollar value on your dreams helps you to realize that the big things
you dream of are in fact not as far away as you think.

For those who are frustrated because they have to budget their income to cover priorities first, do not worry.

By the time you take care of all those higher priorities, you will be much older and wiser, and an Audi R8 will no longer be on your list anymore.

I’m 50, still have 15 years left on a mortgage and just sold my motorcycle because I have a bum knee. The Audi R8 is my dream car, but the only way I am ever going to get one is if I hit the lottery.

I have $40K saved up (by living lean and putting aside $1600 a month for 2 years). But now, after working so hard to scrape that much money together – I am no longer willing to part with all of it to get a supercar with capabilities that are impressive but impractical.

Instead, I will probably put $20K down on an A6, do a four-year loan and build my savings back up for my next (and probably last) car. (I take good care of my cars and usually keep them 10-15 years. I currently have an ’03 Acura TL-S and an ’04 Toyota 4Runner Sport.)